Benefits
| Q: |
How much can I reduce the monthly payments on my medical school loans? |
| A: |
Your monthly payment can be reduced by as much as 50 percent, if you extend your loan term, if you select one of our graduated repayment plans or if qualify for interest-only payments. Your consolidation loan specialist will help you understand your options. There are NO PENTALTIES for early repayment of your loan with a Medical School Loans consolidation loan. Yet, please note: By extending your loan term, your overall financial obligation may increase because you are choosing to make payments (principal, plus interest) over a longer period of time. If you do not choose to repay your loan in full prior to the end of the extended period, the total cost of your loan will be greater than what you would have paid if you had not extended the term. |
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| Q: |
What is the interest rate on a federal consolidation loan? |
| A: |
The fixed interest rate on your Medical School Loans consolidation loan is the weighted average of the interest rates of the loans you consolidate, rounded up to the nearest 1/8th percent. For information on your exact current and possible future interest rates, please call a federal loan specialist at 800.821.5659. |
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Eligibility
| Q: |
Am I eligible for a consolidation loan? |
| A: |
If you have at least $20,000 in eligible outstanding loans and you are not currently in default on your Federal student loans you are eligible for a consolidation loan from Medical School Loans. |
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Application
| Q: |
Why should I apply now? |
| A: |
The U.S. Congress and Department of Education have raised interest rates on federal student loans. On July 1, 2006, the rate on federal Stafford loans rose by nearly 2 percent.
If you are a medical student or recent medical school graduate and you have not yet consolidated your medical student loans, this latest rise in interest rates is critical news for you. Under the current rates, you are probably spending hundreds of dollars each month in added interest.
If you act today, Medical School Loans can help you lock in your current, low rate and protect is from future interest rate increases. Plus you can lower your monthly payment by as much as 50% which can help you save hundreds of dollars each month.
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| Q: |
What should I do to apply? |
| A: |
You can begin saving sooner because Medical School Loans' trained professionals have experience in setting up consolidation loans. Visit our site and we can get you started immediately! A consolidation representative will review your information with you, process your application and work with your current lenders to ensure that your loan information is up to date and accurate. When the process is complete you will have one loan, a low, fixed rate, a significantly lower loan payment and the peace of mind that you have mind that you have improved your financial situation now, when you need it most. |
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| Q: |
How much will I have to pay to consolidate my federal loans? |
| A: |
ZERO. Medical School Loans does not charge medical students any fees to apply for a federal consolidation loan. |
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| Q: |
I have no idea who currently holds my loan, what should I do? |
| A: |
When you call 800.821.5659, our government-authorized consolidation loan specialists will give you FREE information regarding your loan holders. This information will be given to you without any obligation. If you prefer to do the research yourself, you can find lender names and addresses in the repayment information for each of your loans. |
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| Q: |
Will my credit be checked before I am approved for a consolidation loan? |
| A: |
No. Credit checks are not done on Medical School Loans' clients before they obtain federal consolidation loans. However, you must not be in default on a federal student loan. |
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| Q: |
While my application is being processed should I continue paying the student loans that I am consolidating? |
| A: |
Yes. It is essential that you continue to make payments on all of the loans you have chosen to consolidate until you receive your new Loan Consolidation Disclosure Statement and Repayment Schedule form your new loan servicer. |
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Repayment
| Q: |
What are my repayment plan options, and how long do I have to repay my loan? |
| A: |
You have several repayment options for your federal consolidation loan. Depending on the total amount of your medical student loans, your repayment term can be up to 30 years.
- Equal Payments
This option provides equal monthly payments over the term of the loan.
- Select 2/Graduated Payments
This option allows for interest-only payments for the first 2 years of repayment. In the third year, payments increase to level installments of principal and interest payments for the remaining term of the loan.
- Select 5/Graduated Payments
This option allows for interest-only payments for the first 2 years of repayment. In the third through fifth years, payments increase to include a portion of principal. In the sixth year, payments increase to level installments of principal and interest payments for the remaining term of the loan.
- Income-Sensitive Payments
This option provides for payments to be adjusted annually based on your expected total monthly gross income from employment and all other sources. Your account will initially be disbursed at the graduated Select/2 graduated repayment plan. After the consolidation loan is disbursed, you must contact your servicer to qualify. Once eligibility is determined, your servicer will calculate your new payment.
- Extended Equal Payments1
This option allows up to a 25-year repayment term of equal payments.
- Extended Select 2 Payments1
This option allows up to a 25-year repayment term with the Select 2/Graduated Payment plan.
- Extended Select 5 Payments1
This option allows up to a 25 year repayment term with the Select 5/Graduated Payment plan.
All Extended Repayment Plans are for qualified borrowers with more than $20,000 in eligible loans. If you are interested in any of the Extended Repayment Plans you should contact a loan counselor to determine your eligibility.
Your loan balance is the determining factor in the length of time you can choose to repay your loan. This balance includes the loans you wish to consolidate and any additional education loans that you have.
| If your total loan balance is: |
Your maximum repayment period is: |
| $7,500 to $9,999 |
12 years |
| $10,000 to $19,999 |
15 years |
| $20,000 to $29,999 |
20 years |
| $30,000 to $59,999 |
25 years (with extended repayment plan) |
| more than $60,000 |
30 years |
Note: Maximum repayment period excludes authorized periods of deferment and forbearance.
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| Q: |
When will I start repaying my loans? |
| A: |
Once your loan has been funded, you will receive a Loan Consolidation Disclosure Statement and Repayment Schedule from the servicer of your new Medical School Loans Consolidation Loan. Thirty days from the date your loan is funded, you are required to begin repayment according to that schedule. |
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| Q: |
Is it possible to switch to a different repayment plan if I later decide to do so? |
| A: |
Once your loan has been consolidated you may choose to change your repayment plan. Keep in mind that you may choose to pay more than your scheduled payment at any time because Medical School Loans does not have prepayment penalties. |
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| Q: |
If I happen to have extra money, am I allowed to pay more than the minimum loan payment required each month? |
| A: |
Yes. This practice will shorten your overall loan term and decrease your interest costs. The extra money you send in each month is applied directly towards the principal balance of your fixed interest rate loan, so you can pay your medical school loan off faster. Best of all, your consolidation loan will be paid off early without penalty or fee. |
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| Q: |
I already taken out a consolidation loan, can I add any new loans to it? |
| A: |
Yes. You have 180 days from the funding date of your Medical School Loans consolidation loan to add additional eligible loans to your consolidation loan. |
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Private & Secure
How much can I reduce the monthly payments on my medical school loans?
